With the deep analysis of the above options, it is recommended that the company needs to select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would make it possible for the company to not only introduce brand-new and ingenious items in the market it would also minimize the high expenses on R&D under alternative 2 and increase the earnings margins. It would allow the company to increase its share costs also, as financiers want to invest more in companies with significant R&D spending and boost in the overall worth of the company.
Action and implementation Strategy
Strategy can be executed successfully by developing certain short term in addition to long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Rhone Poulenc A should carry out numerous activities to implement its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brands, which generate most of its income.
• Evaluate the current target audience in addition to the marketplace sector which is not consist of in the company's circle.
• Evaluate the current financial data to measure the amount that should be spent on the R&D and acquisitions.
• Evaluate the possible financiers and their nature, i.e. do they want long term benefits (capital gain), or the desire early revenues (dividend). It would let the business to know that just how much amount must be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the business has possible experience to deal with. Get most beneficial organizations with a strong dedication to health, to develop the client's understandings in the right direction.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Rhone Poulenc A values and vision and to prevent possible threat of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health in addition to taste element, as the base for the Rhone Poulenc A as a company producing healthy products has been built under midterm plan and now the business could move towards taste factor too to understand the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to construct new items.
